Tampa's population growth has made small apartment buildings in Seminole Heights, Tampa Heights and near USF a favorite of investors. After the 2024 hurricane season, the insurance quote is the number that most often decides the loan.
In short: LendingStreet finances 5-8 unit buildings across Tampa, St. Petersburg, Clearwater and Brandon with DSCR loans that qualify on the combined rent, with no W-2s or tax returns and LLC borrowers allowed. Loans start at $150,000 with no stated maximum, and leverage on 5-8 units varies by program. Get wind and flood quotes early, and budget taxes on your purchase price.
Seminole Heights and Tampa Heights have 1920s bungalows split into units and 1950s and 1960s block buildings. Ybor City and the area near downtown have older brick buildings, and Sulphur Springs and the area near USF have lower-priced small buildings.
South Tampa has small buildings at higher prices, but much of it is low-lying. Across the bay, St. Petersburg and Clearwater have many small block buildings, and Brandon and Riverview to the east have newer stock.
Many Seminole Heights buildings sit close to the Hillsborough River, and some blocks fall in flood zones even though they are miles from the bay. Check the flood map for each address rather than assuming a neighborhood is in or out.
| Area | Typical building | Main risk |
|---|---|---|
| Seminole Heights and Tampa Heights | Bungalow conversions and block buildings | Roof and electrical |
| South Tampa | Small higher-priced buildings | Storm surge and flood |
| Near USF | Small 1970s buildings | Student turnover |
| St. Petersburg (Pinellas) | Block buildings | Flood zones |
Hurricanes Helene and Milton in 2024 brought storm surge and wind damage across the Tampa Bay area, especially in low-lying parts of South Tampa and Pinellas County. Insurance was already expensive in Florida, and carriers have tightened underwriting.
Carriers focus on roof age, roof covering, opening protection and wind mitigation. In mapped flood zones, flood insurance is required. An elevation certificate can lower the premium if the building sits above base flood elevation.
Five to eight units is the top of the residential range; nine or more units moves into commercial lending. Inside that range the loan is approved on what the building rents for. No W-2s, no tax returns, a 620 minimum score, LLC ownership allowed, $150,000 minimum loan size with no stated maximum, and 30-year terms available.
The test is simple: total rent from all units divided by principal, interest, taxes and insurance. Most programs look for 1.0x or better, and sub-1.0 programs can work when the numbers are close. Purchase leverage can reach 80% LTV and cash-out 75% on smaller rentals, but on 5-8 unit buildings the maximum is often lower and varies by program.
The rent roll does a lot of the work. The appraiser checks every unit's rent against comparable rentals, and income that looks out of line with the area gets a closer look. Vacant or down units need a realistic rent and a plan for getting them leased.
Investment property does not get the homestead exemption. The non-homestead 10% cap on assessment increases resets when you buy, so your first bill reflects your price.
Florida charges documentary stamp tax on deeds at $0.70 per $100 and on notes at $0.35 per $100, plus an intangible tax of 0.2% on new mortgages.
Hillsborough and Pinellas counties also levy different millage rates, and the city of Tampa adds its own. Pull the parcel record and apply the current millage to your purchase price.
This example is illustrative and not a quote. An investor buys a 1960s six-unit block building in Seminole Heights for $1,450,000. The units rent for $1,700 each, for a combined $10,200 a month. Taxes are budgeted at $1,750 a month and insurance at $1,400.
A 75% LTV loan of $1,088,000 carries estimated principal and interest of about $7,607. Add taxes and insurance and the payment is about $10,757, a DSCR of about 0.95x. At 65% LTV, the $942,000 loan has a payment of about $9,737 and a DSCR near 1.05x. Insurance at $1,400 a month is the swing factor. At 75% LTV the building falls below 1.0x; at 65% it clears.
| Item | 75% LTV | 65% LTV |
|---|---|---|
| Purchase price | $1,450,000 | $1,450,000 |
| Combined monthly rent | $10,200 | $10,200 |
| Loan amount | $1,088,000 | $942,000 |
| Estimated principal and interest | $7,607 | $6,587 |
| Taxes and insurance | $3,150 | $3,150 |
| Total monthly payment | $10,757 | $9,737 |
| DSCR | About 0.95x | About 1.05x |
Many 1950s and 1960s block buildings still have original electrical panels, cast iron drains and older roofs. Insurers dislike some older panel brands and aluminum wiring.
Buildings that flooded in 2024 may have been repaired with or without permits. Ask for repair records.
Roofs replaced after the 2024 storms can help the insurance quote. Ask for permit records and the roof installation date, since carriers often price on roof age.
Population growth, financial services jobs, hospitals, USF and MacDill Air Force Base support rental demand. Small buildings near downtown and the Riverwalk lease well to young professionals.
Rising supply of new apartments has slowed rent growth in some areas, so use current rents in your numbers.
Most 5-8 unit buildings are underwritten on 12-month leases. Check city and HOA rules before counting on any monthly or nightly income.
A clean package gets a faster answer on a small apartment building.
LendingStreet makes business-purpose DSCR loans on non-owner-occupied rentals. Our investor loans are business-purpose loans on non-owner-occupied property, and we review 5-8 unit buildings across the Tampa area.
Share the rent roll, the address and your target leverage in the form below or by phone at (877) 298-1001. We will size the loan at more than one LTV so you can see the tradeoff. Our Florida 5-8 unit DSCR page covers the statewide picture.
It depends on roof age, flood zone and wind features. Get quotes before you make an offer.
Yes. The non-homestead cap resets on sale.
Doc stamps on the deed and note, plus intangible tax on new mortgages.
Yes. We finance 5-8 unit buildings across the Tampa Bay area.
Possibly, if it has been properly repaired and can be insured. Bring repair records and permits.
Eight units. Up to eight units fits our residential DSCR programs; nine or more is commercial multifamily.
No. The loan qualifies on the building's rent. There are no W-2s or tax returns, and the minimum credit score is 620.
Sometimes. Sub-1.0 DSCR programs are available, and putting more down is the other common fix.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
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